Islamabad: Shahid Rasheed Butt, a business leader and former president of the Islamabad Chamber of Commerce, has called on the government to pivot its focus from economic stabilization to fostering growth. Butt emphasized the necessity of achieving at least a six percent growth rate to ensure a sustainable future for the country, noting that even reaching a three percent growth rate remains challenging.
According to Islamabad Chamber of Commerce and Industry, Butt highlighted the need for meaningful structural reforms and reducing elite control over national resources to facilitate growth. He warned that without addressing these issues, the country's future viability is at risk.
Butt's statement stressed that reliance on borrowing is no longer viable. Instead, he advocated for comprehensive reforms and a conducive environment for businesses. Though inflation has lessened, the exchange rate has stabilized, and interest rates are easing, economic growth has yet to materialize. Butt cautioned that without growth, conditions could worsen, leading to a potential increase in skilled worker migration.
Investment, Butt noted, is the cornerstone of economic growth, yet current levels are insufficient. He identified policy inconsistency, high borrowing costs, and complex regulations as barriers discouraging investors. He also pointed out that foreign direct investment is limited to a few sectors, with discretionary decision-making undermining transparency and investment.
Energy costs in Pakistan, Butt stated, remain high and unreliable, while the tax system disproportionately affects the documented sector, creating challenges for exporters. He suggested that e-governance and integrated digital databases could enhance transparency and reduce corruption, but these reforms have not been prioritized.
Butt concluded that policymakers are largely focused on crisis management rather than establishing a framework for sustainable growth. He asserted that the lack of a transparent, fair, and investment-friendly system is weakening the country's economic foundations.
The post Business Leader Urges Shift from Stabilization to Economic Growth appeared first on Pakistan Business News.